L’Oréal to acquire cosmetics brand Urban Decay

NEWTON, Mass. — L’Oréal has signed an agreement with Castanea Partners to acquire the fashion-forward, edgy beauty brand Urban Decay.

Terms of the deal, which is expected to close by the end of the year, were not disclosed. In the fiscal year ended in June 2012, Urban Decay, which is sold in such beauty retailers as Ulta and Sephora, recorded net sales of $130 million.

In the United States, Urban Decay will report to Carol Hamilton, president of L’Oréal Luxe USA.

Based in Newport Beach, Calif., Urban Decay, created in 1996 by makeup expert Wende Zomnir, has built a reputation based on the concept of "beauty with an edge" and values of femininity and irreverence. The line has star products in the eye category, such as the Naked Palette, and recently successfully launched its new foundation, the Naked Skin weightless liquid makeup. The market for makeup specialist brands represents 44% of the luxury makeup market in the United States.

"Urban Decay will beautifully complement L’Oréal Luxe’s portfolio of iconic brands. It is the makeup specialist we needed to fully satisfy young women in search of playful colors and inspiration in selective distribution, at an accessible price point. It is totally additional to our existing propositions, and as such, it will contribute significantly to the growth of the division in the years to come," stated Nicolas Hieronimus, president of L’Oréal Luxe.

"Thanks to the acquisition of Urban Decay, the group will strengthen its position in two very dynamic distribution channels in the USA: assisted self-service and e-commerce. We look forward to this new and exciting opportunity,” added Frédéric Rozé, CEO of L’Oréal USA.

This upgraded line of tampons is defined by the latest Playtex innovation, triple layer protection, which is a three-layer design to provide a powerful barrier against leaks. The new Gentle Glide 360° tampons will also continue to feature its 360° Protection design that custom fits a woman’s unique body and adjusts to her flow, the company stated.

According to a recent survey conducted by the Playtex Gentle Glide brand, 66% of women have altered their plans because of their period and fear of leakage. "Our product was redesigned to better address this common concern," stated Chit Itchon, senior brand manager at Playtex. "We want to give women confidence and peace of mind so that they won’t be held back by their periods."

Beyond the new triple layer protection, there’s also a new and improved fragrance for the scented line.

The new line comes in multiple absorbencies to address all flow needs, including light, regular, super, super plus, ultra and multi-absorbency packs.

ARLINGTON, Va. — More than half of U.S. adults plan to buy holiday gifts during Thanksgiving weekend, according to a new survey from the Consumer Electronics Association.

The survey found that 60% will buy gifts during Black Friday weekend, with the average adult planning to spend $218 between Thursday and Monday, compared with $159 last year. At the same time, the "fiscal cliff" may affect their holiday spending. Overall, consumers plan to spend $842 on gifts this year.

Thirty-seven percent plan to shop on Black Friday, with 33% going to a retail store and 20% shopping online; Saturday and Monday will see 34% and 25% of respondents shopping, respectively. Fifty-seven percent plan to buy at least one gift, a 10% increase over last year.

"The 2012 Thanksgiving weekend has the potential to be the biggest shopping weekend on record," CEA chief economist and senior director of research Shawn DuBravac said. "A full 66% of shoppers haven’t completed any of their holiday shopping, but on average, by the end of the weekend, consumers expect to have completed some 30% of their holiday shopping."

Shoppers with tablets and smartphones plan to use them to help find gifts, with 69% of adults using a mobile device while shopping or researching gifts. Forty-seven percent will use them to get more information about products, 44% will use them to comparison shop, and 39% will use them to look up retailer information.

At the same time, 51% said the impending fiscal cliff would have an adverse effect on their spending during the holiday season, as well as the amount of money they spend on gifts, while 18% said it was going to have a significant effect.

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